The standard materials cost to produce 1 unit of product r is 6 pounds of material at a standard price of $50 per pound. in manufacturing 8,000 units, 47,000 pounds of material were used at a cost of $51 per pound. what is the direct materials quantity variance?

Given the formula;
AQ = 47,000
AP = $51
SQ = 6 pounds
SP = 8,000 units * $50pound

The formula to get the total direct materials cost variance is SQ * SP - AQ * AP = Total direct materials variance.

6/pounds * 8,000 units * $50/pound - 47,000 pounds * $51/pound = $3,000 F

The total direct materials variance is $3,000 F

Answer Link

tifanihayyu tifanihayyu · Answer 2 · 2019-09-16T20:05:20+02:00

The direct materials quantity variance gives an idea how much the actual cost incurred on account of materials for manufacturing varies from the standard or expected cost. The calculated answer is $3000 (favorable)

Further explanation

The material cost variance gives an idea as to how much the actual cost incurred on account of materials for manufacturing varies from the standard or expected cost. The standard (or actual) total cost of material is obtained by multiplying the standard (or actual) price per pound of material with the standard (or actual) quantity of material.

[tex]AQ = 47,000[/tex]

[tex]AP = 51[/tex] dollar

[tex]SQ = 6 pounds[/tex]

[tex]SP = 8,000 units * 50 pound[/tex] dollar

The formula to get the total direct materials cost variance is

[tex]SQ * SP - AQ * AP = Total direct materials variance.[/tex]

[tex](6/pound) * 8,000 units * ($50/pound) - 47,000 pound * (dollar 51/pound) = 3,000 [/tex] dollar (favorable)

The total direct materials variance is [tex]3,000[/tex] dollar (favorable)

Learn more

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Answer details

Grade: 9

Subject: business

Chapter: The standard materials cost

Keywords: The standard materials cost, manufacturing, the direct materials quantity, units, cost